Many industry officials have recently been speculating about whether any recovery in the housing market can be sustained, after figures released showed that mortgage interest rates have been increasing for the first time in the space of a year.

Nationwide recently announced some increases in its mortgage interest rates, and many officials feared that a number of other lenders would quickly follow suit. Many have now also raised their interest rates, and this has spurred speculation that any recovery in the housing market will not be sustained.

Over recent weeks a number of reports have been released showing signs of recovery, and this includes figures showing increased interest from potential buyers in purchasing property.

Increased lending has also resulted in increased confidence in the markets, although many lower income families and first time buyers are still struggling when it comes to getting mortgage finance. The Bank of England base is still at record lows of 0.5 percent, which has also been seen as encouraging.

However, rising mortgage interest rates from lenders recently means that the encouraging data that many hoped would bolster the mortgage market could adversely affect these positive signs. One industry official said that once lenders start to increase mortgage interest rates others will naturally follow, and this has already been seen over recent weeks.

He said: “All the signs suggest fixed-rate mortgage rates are only heading one way – upwards. When a few lenders start raising rates, the rest of the market are quick to follow.”

In April the number of fixed rate mortgage that were taken out was at its highest in around a year according to another recent report, but with fixed rate mortgage rates increasing the level of fixed rate deals being taken out could dwindle over the coming months.

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